AUDUSD has hovered around 0.7746 for 16 days. During this period, the price had fluctuated within a small range making it hard to see a significant trend. At the beginning of May, the price started to make its first wave of the descending triangle, which was also a big move with a steeper angle. That could be considered the signal for the end of the first period. Till now, the descending triangle has been forming for days, we can see that two waves have already finished, the triangle is on the right way.
The descending triangle is considered a bearish signal. So, at the end of the triangle, the price would break out the trend line and make a new downward trend. When will the triangle end? The triangle could end up anywhere. What we can do is keep our eyes on the pattern and any new signals. The MACD just made a death cross, meaning that in theory the price could start to go down, but this could be a signal for a small downward wave only, not specifically the break-out signal we are looking for. Keep AUDUSD on your watchlist and see if you can spot that break-out signal in the coming days.
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forex, trading conditions, technical analysis, fundamental analysis